director - Ministarstvo finansija

Guidebook to the tax system
BULLETIN OF THE MINISTRY OF FINANCE/JANUARY-MARCH 2006
MAIN CHARACTERISTICS
OF RESPECTIVE TAX TYPES
1. CUSTOMS AND OTHER DUTIES
The customs system is regulated by the Customs Law ("Official
Gazette of RM", No. 07/02, 38/02, 72/02, 21/03, 31/03 and
29/05), Law on Customs Tariff ("Official Gazette of RM", No.
75/05) and Law on Customs Administration, including relevant
by-laws adopted on the basis of the above laws.
The Customs Law regulates the customs procedure; rights and
liabilities of persons participating in the customs procedure; and
rights, liabilities and powers of the competent authority for clearance
of goods.
Law on Customs Tariff regulates nomenclature of goods and
amount of tariff rates. The Law covers 10.229 of tariff items, the
number of which has been increased by 1.675 or 19,58% comparing
to previous solution. Average nominal tariff protection rate is
6,17%.
Customs duty is charged and levied as a percentage of the value
of goods ("ad valorem"), ranging from 0% to 30%, or as an amount
of local currency per unit of measurement (specific duty) for import
of certain agricultural products. No customs duty is levied on
exported goods.
Law on Customs Administration regulates scope of work of
the tax authority (The Customs Administration) as well as rights, liabilities
and responsibilities of the customs officers.
2. EXCISES
Excise tax payment liability is regulated by the Excise Tax Law
("Official Gazette of RM", No. 65/01 and 76/05), which was adopted
at the end 2001, and has been in force since 1 April 2002, and
by regulations adopted on the basis of the said Law. The Law was
amended at the end of 2005, mainly with respect to manner of calculation
and payment of excise tax on cigarettes.
Excise tax is levied on: alcohol and alcoholic beverages, tobacco
products, and mineral oils, mineral oil products and substitutes.
Excise tax on alcohol and alcoholic beverages is payable at
the following rates:
- EUR 1,90 per alcohol volume content per hectoliter of beer
- EUR 0 (zero) per hectoliter of table wine;
- EUR 35 per hectoliter of sparkling wine;
- EUR 40 per hectoliter of other fermented beverages
- EUR 70 per hectoliter of light alcoholic beverages;
- EUR 550 per hectoliter of pure alcohol
Excise tax on mineral oils, mineral oil products and substitutes
is paid as follows:
Gasoline and other light oils:
- Euro 0.120/kg for aviation gasoline (tariff code CN 2710.00 11
10);
- Euro 0.364/liter for motor unleaded gasoline (tariff code CN
2710.00 11 20);
- Euro 0.120/kg for fuel for jet gasoline motors (tariff code CN
2710.00 11 30),
- Euro 0.364/liter for other types of motor fuel (tariff code CN
2710.00 11 90);
Kerosene:
- Euro 0.120/kg for petroleum (kerosene) for motors, (tariff code
CN 2710.00 21 10);
- Euro 0.120/kg for fuel for jet kerosene motors (tariff code CN
2710.00 21 20);
- Euro 0.120/kg for other types of kerosene (tariff code CN
2710.00 21 90);
- Euro 0.069/kg for fuel for jet kerosene motors (tariff code CN
2710.00 21 20), which is used for heating;
Gas oils:
- Euro 0.270/liter for Diesel fuel (tariff code CN 2710.00 31 00);
- Euro 0.120/liter for Diesel fuel (tariff code CN 2710.00 31 00)
which is used as heating oil;
- Euro 0.270/liter for ship and other fuels (tariff code CN
2710.00 32 00);
- Euro 0.120/liter for other oils (tariff code CN 2710.00 39 00);
Heating oils:
- Euro 0.023/kg for low-sulfur oil for metallurgy (tariff code CN
2710. 00 41 00);
- Euro 0.023/kg for other heating oils (tariff code CN 2710. 00
49 00);
Oil gas and other gas hydrocarbons:
- Euro 0.069/kg for mixtures of propane and butane gas (tariff
code CN 2711.19 00 10)
- Euro 0.069/kg for other oil gas (tariff code CN 2711.19 00 90).
Excise tax on cigarettes includes specific and proportional excise
tax. Specific excise tax for all cigarettes amounts 1,00 eur/kg
(0,02 eur/per pack). Proportional excise tax is 26% of retail cigarette
price including excise tax and VAT.
Retail price of cigarettes is determined by manufacturer himself
or by importer and the same is published in the "Official Gazette of
RM".
Excise tax for other tobacco products is paid per kilogram
and amounts:
- Euro 10/kg for cigars and cigarettes,
- Euro 20/kg for shredded tobacco (for rolling cigarettes),
- Euro 15/kg for other smoking tobacco
Excise Taxpayer is a manufacturer or importer of excise goods
or person to which excise tax liability may be transferred in conformity
with the Law (excise licensee, tax exempt user).
Excise tax liability arises when the excise goods is produced
on the territory of Montenegro or imported into Montenegro.
Excise tax is paid on imported excise goods concurrently with
payment of customs duties, except for cases when deferred excise
tax payment is allowed (storage in a customs warehouse or plant of
a tax exempt user).
Excise tax liability on cigarettes arises on a day of taking over
the control excise stamps issued by the Tax Administration.
Local excise taxpayer calculates excise tax by himself. The excise
tax is calculated on monthly basis, while the calculation is given in
a tax return which is to be filed with the tax authority until 15th
day of a month for the previous month, which is also a deadline
11